Topic 8: Management Information Systems (MIS)

Question 1

Define a Management Information System (MIS)

Answer 1

“An organised collection of people, procedures and resources designed to support the decisions of managers. Data from both internal and external sources is converted to management information.” (Textbook)
OR
“Systems that convert data from internal & external sources into information designed to support the decisions of managers”

Question 2

Name 3 internal sources of data that a company could use in its MIS.

Answer 2

Typical financial and operational data used in an MIS includes: 
Sales figures
Staff rotas
Staff levels
Costs
Revenue
Profit
Supplier performance
R&D 
Return on Investments
(many more)

Question 3

Name 3 external sources of data that a company could use in its MIS.

Answer 3

Demographics of the local population
Local employment
Infrastructure (availability of roads, rail etc)
Competitors' announcements
Market research – trends, mobile phone data
Weather patterns
Social media profiles and trends
Mobile phone locations

Question 4

Name two factors in good design of an MIS.

Answer 4

Input data must be accurate
Prevents information overload - managers get only the information they need at the time they need it.
Analysis must be flexible
Must allow speedy decisions for urgent situations
Provide results in many different formats (charts, text, reports)
Must be accessible to a wide range of users who have varying levels of skills and knowledge
It should improve communications between management and employees.

Question 5

Name two factors in poor design of an MIS.

Answer 5

MIS is too complicated for users.
The reports produced are too detailed and difficult to understand.
User requirements were poorly understood from the start.
System was designed ‘ad hoc’ rather than using formal methods.
IT department designed the system - users/managers weren’t consulted.
Consultants designed the system - they don’t understand enough about the company.
Hardware specification is not powerful enough.